Author(s): Iliya Atanasov — Publication date: 2012-10-24 Category: Better Government Abstract: Pension boards across Massachusetts must use more rigorous actuarial assumptions about pension fund investment returns and accelerate the rate at which they pay down unfunded liabilities to meet the 2040 statutory deadline for fully funding public pensions in the Commonwealth according to a new study published by Pioneer Institute. The Commonwealth's 105 pension boards assume annual returns of between 7.5 and 8.5 percent. Under those assumptions, the state's payments to retire the unfunded liability will gradually increase from just over $1 billion last year to about $3.2 billion in 2040. When all of the pension boards are included, payments are projected to reach about $3.5 billion by 2040.
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